Carney's cabinet meets in Banff as trade war escalates and Alberta referendum looms
Prime Minister Mark Carney gathered his government Thursday to navigate U.S. tariffs, a separated Alberta, and Parliament's return next week.
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Prime Minister Mark Carney convened his cabinet Thursday in Banff for closed-door sessions aimed at charting Canada's course through a sharpening trade conflict and domestic political turbulence.
The timing pressed hard. The U.S. announced new tariffs and trade bans this week. Canada is still reviewing retaliation options after imposing nearly $28 billion in retaliatory tariffs on September 8 — a response to 50 per cent U.S. tariffs on Canadian imports announced after Canada suspended negotiations August 21. The U.S. response included bans on Canadian alcohol, motorcycles, and some dairy products, plus exclusion of Canadians from U.S. government contracts.
Carney described the latest U.S. measures as "relatively modest" but signalled a firm stance. "We're always ready to sit down in a professional way to negotiate — we think there is a mutually beneficial deal that respects our sovereignty and is in the interests of both countries," he told reporters. He said Canada needs "credibility and stability" before resuming U.S. negotiations.
The cabinet agenda focused on strengthening the economy and infrastructure, diversifying trade relationships, and managing the trade war fallout. Carney pointed to domestic wins: "We have made bold changes, including new major infrastructure projects, a new Defence Industrial Strategy and a new tax credit to make Canadian businesses more competitive."
He framed Canada as negotiating "from a position of strength," citing better job-creation levels than the U.S. and investment rates "that are the envy of the world." He added: "And for an investor, wherever they're from, (Canada's) a country that respects the rule of law, a country that is reliable."
The meeting occurs with Alberta's October 19 separation referendum approaching. Cabinet ministers have made recent stops in Alberta, including Agriculture Minister Heath MacDonald, Industry Minister Melanie Joly, and Energy Minister Tim Hodgson. When asked if he was concerned the pro-Canada side was being out-organized and heavily outspent, Carney said he would not commit financial resources to the pro-Canada campaign.
Parliament resumes September 21.
What specific tariffs did Canada impose on September 8, and which industries are most affected?
What last-minute U.S. demands prompted Canada to suspend negotiations on August 21?
We'll update this story as answers emerge.
The facts
When did Canada impose retaliatory tariffs on U.S. goods?
Canada imposed nearly $28 billion in retaliatory tariffs on Tuesday, September 8, 2026.
What U.S. products did the latest tariffs and trade bans target?
The U.S. measures included bans on Canadian alcohol, motorcycles, and some dairy products, plus exclusion of Canadians from U.S. government contracts.
When is Alberta's separation referendum scheduled?
Alberta's separation referendum is scheduled for October 19, 2026.
